Personal Finance

Separating Property Tax from Mortgage

  • Last Updated:
  • Oct 16th, 2014 12:27 pm
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Deal Expert
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Jul 5, 2004
27438 posts
6807 upvotes
lovefreemoney wrote: Ok great, at least we know that I guess.
Now what to do about the excessive funds their taking over and above the taxes.
I figure by the end of my 5 year term, there will be over 3k in excess funds in this tax account, assuming taxes stay the same.
Call them and discuss it with them
Deal Expert
Feb 29, 2008
30106 posts
5547 upvotes
Montreal
vkizzle wrote: See below, which probably explains why some of you where not allowed to opt out!

"If your mortgage is High Ratio(Less than 20% down payment) you must continue to pay your property taxes with your mortgage as the bank is required to ensure your property taxes up to date. If your mortgage is conventional(20% down payment or more) you may wish to pay your property taxes by yourself. Please visit a TD branch close to you and an Advisor will help you in confirming the details specific to your mortgage and if needed change the mortgage payment options to be paid by you directly instead of the bank. Alternatively you may speak to a Mortgage Advisor over the phone by calling Easyline at 1-866-222-3456 available 24/7."
Is this a federal or CMHC rule? Or bank dependent. I had to submit to this for mortgage that barely covered 30% of the value.
Deal Addict
Dec 21, 2011
3518 posts
689 upvotes
Allenford
mr_raider wrote: Is this a federal or CMHC rule? Or bank dependent. I had to submit to this for mortgage that barely covered 30% of the value.
What's been quoted is a TD rule. Other FIs may have a similar policy. Did you have another mtg on the property in addition to the barely 30% mtg?
Deal Expert
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Feb 24, 2008
15587 posts
7027 upvotes
Gatineau
vkizzle wrote: See below, which probably explains why some of you where not allowed to opt out!

"If your mortgage is High Ratio(Less than 20% down payment) you must continue to pay your property taxes with your mortgage as the bank is required to ensure your property taxes up to date. If your mortgage is conventional(20% down payment or more) you may wish to pay your property taxes by yourself. Please visit a TD branch close to you and an Advisor will help you in confirming the details specific to your mortgage and if needed change the mortgage payment options to be paid by you directly instead of the bank. Alternatively you may speak to a Mortgage Advisor over the phone by calling Easyline at 1-866-222-3456 available 24/7."
This must be a bank rule. My cousin recently purchased his first home with only 8% down. His mortgage is with RBC and he is paying property taxes separately as he declined when offered by the Mortgage broker to have it combined with mortgage payments.

djino

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